A legislative panel on Tuesday endorsed the Sanders administration's request for nearly $11 million in one-time state funds to help Arkansas public schools cover part of their rising property insurance premiums.
The Legislative Council's Performance Evaluation and Expenditure Review Committee recommended the Legislative Council, which meets Friday, approve the state Department of Insurance's request for about $10.8 million in state-restricted reserve funds. The state will cover 30% of the cost of the premiums for schools' property insurance under this proposal.
Legislative Council Co-Chairman Rep. Jeff Wardlaw, R-Hermitage, said the council plans to hire a consultant to help lawmakers develop long-term changes to help public schools afford property insurance.
The rising cost for property insurance is a result of nationwide storms that have damaged school facilities and have substantially increased premiums. On average, Arkansas schools have seen their premiums shoot up by 130%, according to the governor's office.
Education officials said last week that an increase in severe weather, both in Arkansas and nationally, is the reason insurance companies have raised premiums.
Last week Gov. Sarah Huckabee Sanders laid the blame on insurance companies for the large increase in premiums, saying they are trying to take advantage of already financially strapped public schools.